OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE : MUMBAI-III

VARDAAN TRADE CENTRE, 4^TH FLR, ROAD NO. 16, W.I.E., THANE 400 604 TEL : 2 58 00 617

Trade Notice No.  3 /Gen(3  )/C.Ex./MIII/2005  Dated    28^th       Jan, 2005

Subject: Voluntary payment of duty in non-evasion cases before issue of Show Cause                               Notice under Section 11A(1) in terms of provision of Sub-Section 2B of  Section

              11A of Central Excise Act, 1944 -  clarification regarding.

            Attention of the trade is invited to the Provision of Sub section (2B) of Section 11A of Central Excise Act, 1944  by virtue of which where any duty of excise has not been paid or levied or has been short levied or short paid or erroneously refunded, the person, chargeable with duty, may pay the amount of duty before service of notice on him under Sub-section (1) of Section 11A in respect of the duty and inform the Central Excise officer of such payment in writing who on receipt of such information shall not serve any  Show cause notice under Sub-section (1) of Section 11A in respect of the duty so paid.

            Explanation 1 to this Sub-section (2B) of section 11A stipulates that nothing contained in this sub-section shall apply in a case where the duty was not levied or was not paid or was short levied or was short paid or was erroneously refunded by reason of fraud, collusion or any willful mis-statement or suppression of facts or contravention of any of the provisions of this Act or the Rules made thereunder with intent to evade payment of duty. Thus sub-section (2B) of section 11A is applicable in non-evasion cases only.

            Further, under Explanation 2 to Sub-section (2B) of Section 11A, it is clarified that the interest under Section 11AB shall be payable on the amount paid by the person under this sub-section.

             All trade associations are requested to bring the contents of this Trade Notice to the notice of their member manufacturers in particular and the trade in general to opt for voluntary payment of duty and interest with waiver of Show Cause Notice/penalty in appropriate cases.

 

                                                                                                            Sd/-

                                                                                            (K.K. SHRIVASTAVA)     

                                     COMMISSIONER                                                                    

                         CENTRAL EXCISE : MUMBAI-III

F.No.V.Gen( 30 )/200/2005/M-III

Thane, the  

Copy to : All Trade Associations as per Mailing List / Member of RAC (OS) & SSI by

                name / All Chambers of Commerce/Press Information Bureau.

               All Additional Commissioner / Joint Commissioners /

   All Divisional Deputy/Assistant Commissioners (with 10 spare copies) /

   Assistant Commissioner (Audit) / Brand Rate Unit / P.R.O. (Notice Board).

   Office of the Chief Commissioner of Central Excise & Custom, Mumbai, Zone II.

(Based on Letter F.No.IV/24-117/CCO-II/MCX/2004 Dated : 24^th November, 2004)